THE LALIT KALA AKADAMI (TAKING OVER OF MANAGEMENT) ACT, 1997 
________ 

ARRANGEMENT OF SECTIONS 
_________ 

CHAPTER I 

PRELIMINARY 

SECTIONS 

1.  Short title and commencement. 
2.  Definitions. 

CHAPTER II 

TAKING OVER OF THE MANAGEMENT OF THE LALIT KALA AKADAMI 

3.  Management of the society. 
4.  Administrator of society. 
5.  No right to compensation for premature termination of a contract. 
6.  Relinquishment of administration of the society. 
7.  Application of Act 21 of 1860. 

CHAPTER III 

MISCELLANEOUS 

8.  Penalties. 
9.  Offences by companies. 
10.  Exclusion of period of operation of Act. 
11.  Act to have overriding effect. 
12.  Protection of action taken in good faith. 
13.  Contracts in bad faith may be cancelled or varied. 
14.  Power to terminate contract of employment. 
15.  Power to make rules. 
16.  Repeal and saving. 

1 

 
 
 
 
THE LALIT KALA AKADAMI (TAKING OVER OF MANAGEMENT)ACT, 1997 

ACT NO. 17 OF 1997 

[25th March, 1997.]  

An Act to provide for the taking over of the management of the Lalit Kala Akadami for a limited period 

in the public interest and for matters connected therewith or incidental thereto. 

WHEREAS the Lalit Kala Akadami was set up as an apex cultural body in the field of visual arts by the 
Government of India by the Parliamentary Resolution passed on the 5th day of August, 1954 to encourage 
and promote visual arts such as paintings, graphics, sculptures, etc.; 

AND  WHEREAS the Lalit Kala Akadami was registered as a society under the Societies Registration 

Act, 1860 (21 of 1860) on the 11th day of March, 1957; 

AND WHEREAS the Akadami has full functional autonomy in the field of its activity, even though the 

Government of India is the sole-funding agency for the organisation; 

AND  WHEREAS pursuant to the complaints received with regard to the misuse of funds by the Lalit 
Kala  Akadami  from  several  quarters  including  from  the  Hon'ble  Members  of  Parliament,  a  Committee 
was  set  up  by  the  Government  of  India  by  Resolution  dated  the  24th  day  of  March,  1988  under  the 
Chairmanship of Shri P.N. Haksar to go into the functioning of National Akadamies including the Lalit 
Kala Akadami and the said Committee, after a detailed scrutiny of the affairs in the management of the 
said  Akadami,  recommended  the  restructuring  of  their  General  Council,  Executive  Board  and  the 
electoral roll, of the artists constituency;  

AND WHEREAS, in view of the serious difficulties which have arisen with regard to the management 
of the Lalit Kala Akadami, it is necessary to take over, for a limited period, the management thereof and it 
is  felt  that  any  delay  in  taking  over  the  management  of  the  Lalit  Kala  Akadami  would  be  highly 
detrimental to the interests and objective of Akadami; 

BE it enacted by Parliament in the Forty-eighth Year of Republic of India as follows:– 

CHAPTER I 

PRELIMINARY 

1. Short title and commencement.–(1) This Act may be called the Lalit Kala Akadami (Taking Over 

of Management) Act, 1997.  

(2) It shall be deemed to have come into force on the 24th day of January, 1997. 

2. Definitions.–In this Act, unless the context otherwise requires,– 

(a) “Administrator” means a person appointed as the Administrator under section 4; 

(b) “prescribed” means prescribed by rules made under this Act; 

(c) “Societies  Registration Act”  means the  Societies Registration  Act,  1860  (21  of  1860),  as in 

force in the National Capital Territory of Delhi; 

(d)  “society”  means  the  Lalit  Kala  Akadami  being  a  society  registered  under  the  Societies 

Registration Act. 

2 

 
(e) words and expressions used herein and not defined, but defined in the Societies Registration 

Act shall have the meanings respectively assigned to them in that Act.  

CHAPTER II 

TAKING OVER OF THE MANAGEMENT OF THE LALIT KALA AKADAMI 

3. Management of the society.–(1) On and from the commencement of this Act, and for a period of 

three years thereafter, the management of the society shall vest in the Central Government: 

Provided that if the Central Government is of opinion that in order to secure the proper management 
of the society, it is expedient that such management should continue to vest in the Central Government 
after  the  expiry  of  the  said  period  of  three  years,  it  may,  from  time  to  time,  issue  directions  for  the 
continuance of such management for such period, not exceeding one year at a time, as it may think fit; so, 
however,  that  the  total  period  for  which  such  management  shall  continue  to  vest  in  the  Central 
Government shall not, in any case, exceed five years. 

(2) The management of the society shall be deemed to include management of all assets, rights, lease-
holds,  powers,  authorities  and  privileges  and  all  property,  movable  and  immovable,  including  lands, 
buildings, works of art, workshops, projects, stores, instruments, library, machinery automobile and other 
vehicles,  cash  balances,  reserve  funds,  investments  and  book  debts  and  all  other  rights  and  interests 
arising out of such property as were immediately before the commencement of this Act in the ownership, 
possession, power or control of the society, and all such books of account, registers, maps, plans and all 
other documents of whatever nature relating thereto. 

(3)  Any  contracts,  whether  express  or  implied,  or  other  arrangement,  in  so  far  as  it  relates  to  the 
management of the society and affairs of the society and in force immediately before the commencement 
of this Act shall be deemed to have terminated on such commencement. 

(4)  All  persons  in  charge  of  the  management  of  the  society,  including  persons  holding  offices  as 
Chairman,  Vice-Chairman,  Secretary  or  Honorary  Secretary,  as  the  case  may  be,  and  members  of  the 
General  Council,  Executive  Board,  Finance  Committee  and  all  other  committees  of  the  society 
immediately before the commencement of this Act shall be deemed to have vacated their offices as such 
on such commencement. 

4. Administrator of society.–(1) The Central Government shall, as from the commencement of this 
Act, appoint a person as the Administrator of the society for the purpose of taking over the administration 
thereof  and  the  Administrator  shall  carry  on  the  management  of  the  society  for  and  on  behalf  of  the 
Central Government. 

(2) Subject to the supervision, control and directions of the Administrator, the functions of the finance 
Committee of the Society, before the commencement of this Act, shall be exercised by an officer of the 
Central Government, to be appointed by that Government. 

(3)  The  Central  Government  may  issue  such  directions  (including  directions  as  to  initiating, 
defending  or  continuing  any  legal  proceedings  before  any  court,  tribunal  or  other  authority)  to  the 
Administrator as to his powers and duties as that Government may deem desirable and the Administrator 
may  apply  to  the  Central  Government  at  any  time  for  instructions  as  to  the  manner  in  which  he  shall 
conduct  the  management  of  the  society  or  in  relation  to  any  matter  arising  in  the  course  of  such 
management. 

3 

 
(4) Subject to the other provisions of this Act and the rules made thereunder and to the control of the 
Central  Government,  the  Administrator  shall  be  entitled,  notwithstanding  anything  contained  in  the 
Societies  Registration  Act  or  any  other  law  for  the  time  being  in  force,  to  exercise,  in  relation  to  the 
management  of  the  society,  the  powers  of  the  General  Council,  or,  as  the  case  may  be,  the  Executive 
Board, including the powers to dispose of any property or assets of such society, whether such powers are 
derived under any law for the time being in force or from the memorandum and rules and regulations of 
the society or from any other source. 

(5)  Every  person  having  possession,  custody  or control  of  any  property  forming  part  of the  society 

shall deliver forthwith such property to the Administrator. 

(6) Any person who, on the commencement of this Act has in his possession or under his control any 
books,  papers,  works  of  art  or  other  documents  relating  to  management  of  the  society,  including  the 
minutes books containing the resolutions of the persons in charge of the management of the society before 
the commencement of this Act, the current cheque books relating to the management of the society, any 
letters,  memoranda,  notes or  other communications  between  him  and  the  society  shall,  notwithstanding 
anything contained in any other law for the time being in force, be liable to account for the books, papers, 
works  of  art  and  other  documents  (including  such  minutes  books,  cheque  books,  letters,  memoranda, 
notes or other communications) to the Administrator. 

(7) Any person in charge of the administration of the society immediately before the commencement 
of this Act shall, within ten days from that day or within such further period as the Central Government 
may allow in this behalf, furnish to the Administrator a complete inventory of all the properties and assets 
(including  particulars  of  book  debts  and  investments  and  belongings)  forming  part  of  the  society 
immediately before the commencement of this Act, and of all the liabilities and obligations of the society, 
in  relation  to  its  administration,  subsisting  immediately  before  such  commencement,  and  also  of  all 
agreements entered into by the society in relation to its administration and in force immediately before 
such commencement. 

(8) The  Administrator  shall  receive  from  the  funds  of  the  society  such  remuneration  as  the  Central 

Government may fix.  

5. No right to compensation for premature termination of a contract.–Notwithstanding anything 
contained  in  any  law  for  the  time  being  in  force,  no  person  in  respect  of  whom  any  contract  of 
management or other arrangement is terminated by reason of the provisions contained in sub-section (3) 
of section 3 or who ceases to hold any office by reason of the provisions contained in sub-section (4) of 
that section, shall be entitled to claim any compensation for the premature termination of the contract of 
administration or other arrangement or for the loss of his office. 

6.  Relinquishment  of  administration  of  the  society.–(1)  Notwithstanding  anything  contained  in 
sub-section (1) ofsection 3, if, at any time before the expiry of the period referred to in that sub-section, it 
appears to the Central Government that the purposes of the vesting of the management of the society in 
that Government have been fulfilled or that for any other reason it is not necessary that the  management 
of  the  society  should  remain  vested  in  that  Government,  it  may,  by  order  published  in  the  Official 
Gazette, relinquish the management of the society with effect from such date as may be specified in the 
order. 

(2) On and from the date specified under sub-section (1), the administration of the society shall vest 
in the  General  Council  of the society  and  such  management  shall  be carried on  in accordance  with  the 

4 

 
provisions  of  the  Societies  Registration  Act  so,  however,  that  the  steps,  if  any,  in  relation  to  the 
management of the society may be taken after the publication of the order under sub-section (1). 

7.  Application  of  Act  21  of  1860.–(1)  Notwithstanding  anything  contained  in  the  Societies 
Registration  Act  or  in  the  memorandum  and  rules  and  regulations  of  the  society,  but  subject  to  the 
provisions of sub-section (2) of section 6, so long as the management of the society remains vested in the 
Central Government.– 

(a)  it  shall  not  be  lawful  for  the  members  of  the  society  or  any  other  person  to  nominate  or 

appoint any person to be a member of the General Council of the society; 

(b) no resolution passed at any meeting of the members of the society or at any meeting of the 
General  Council  of  the  society,  on  or  after  the commencement  of  this  Act,  shall  be  given  effect to 
unless approved by the Central Government; 

(c) no proceeding for the dissolution of the society or for the merger with any other society or for 
the appointment of a Receiver in respect of its administration shall lie in any court except with the 
consent of the Central Government. 

(2)  Subject  to  the  provisions  contained  in  sub-section  (1)  and  subject  to  such  other  exceptions, 
restrictions and limitations, if any, as may be prescribed, the Societies Registration Act shall continue to 
apply to the society in the same manner as it applied thereto before the commencement of this Act.  

CHAPTER III 

MISCELLANEOUS 

8. Penalties.–Any person who,– 

(a)  having  in  his  possession  or  custody  or  under  his  control  any  property  forming  part  of  the 
society, wrongfully withholds such property from the Administrator or any person authorised under 
this Act, or 

(b) wrongfully obtains possession of any such property, or 

(c)  wilfully  retains,  or  fails  to  deliver,  any  property  forming  part  of  the  society  or  removes  or 

destroys it, or 

(d) wilfully withholds or fails to account for any books, papers, works of art or other documents 
which may be in his possession or custody or under his control to the Administrator or any person 
authorised under this Act, or 

(e)  fails,  without  any  reasonable  cause,  to  furnish  information  or  particulars  as  provided  in           

sub-section (6) of section 4, 

shall be punishable with imprisonment for a term which may extend to two years, or with fine which may 
extend to ten thousand rupees, or with both. 

9. Offences by companies.–(1) Where an offence under this Act has been committed by a company, 
every person who at the time the offence was committed was in charge  of, and was responsible to, the 
company for the conduct of the business of the company as well as the company, shall be deemed to be 
guilty of the offence and shall be liable to be proceeded against and punished accordingly: 

5 

 
Provided that nothing contained in this section shall render any such person liable to any punishment 
if  he  proves  that  the  offence  was  committed  without  his  knowledge  or  that  he  had  exercised  all  due 
diligence to prevent the commission of such offence. 

(2) Notwithstanding anything contained in sub-section (1), where any offence under this Act has been 
committed  by  a  company  and  it  is  proved  that  the  offence  has  been  committed  with  the  consent  or 
connivance of, or is attributable to, any neglect on the part of any director, manager, secretary or other 
officer of the company, such director, manager, secretary or other officer shall be deemed to be guilty of 
that offence and shall be liable to be proceeded against and punished accordingly.  

Explanation.–For the purposes of this section,– 

(a) “company” means any body corporate and includes a firm or other association of individuals; 

and 

(b) “director”, in relation to a firm, means a partner in the firm. 

10.  Exclusion  of  period  of  operation  of  Act.–In  computing  the  period  of  limitation  prescribed  by 
any law for the time being in force for any suit or application against any person by the society in respect 
of any matter arising out of any transaction in relation to its management, the time during which this Act 
is in force shall be excluded. 

11. Act to have overriding effect.–The provisions of this Act or any notification, order or rule made 
thereunder shall have effect notwithstanding anything inconsistent therewith contained in any law other 
than this Act or in any instrument having effect by virtue of any law other than this Act or in any decree 
or order of any court. 

12. Protection of action taken in good faith.–(1) No suit, prosecution or other legal proceeding shall 
lie against the Administrator or any officer of the Central Government or any other person for  anything 
which is in good faith done or intended to be done under this Act. 

(2) No Suit or other legal proceeding shall lie against the Central Government or the Administrator or 
any officer of the Central Government or any other person for any damage caused or likely to be caused 
by anything which is in good faith done or intended to be done under this Act. 

13. Contracts in bad faith may be cancelled or varied.–(1) If the Central Government is satisfied, 
after such inquiry as it may think fit, that any contract or agreement entered into at any time within one 
year immediately preceding the commencement of this Act, between the society and any other person, in 
so far as such contract or agreement relates to the management of the society, has been entered into in bad 
faith, or is detrimental to the interests of the society, it may make an order cancelling or varying (either 
unconditionally or subject to such conditions as it may think fit to impose) such contract or agreement and 
thereafter the contract or agreement shall have effect accordingly: 

Provided that no contract or agreement shall be cancelled or varied except after giving to the parties 

to the contract or agreement a reasonable opportunity of being heard. 

(2)  Any  person  aggrieved  by  an  order  under  sub-section  (1)  may  make  an  application  to  the  High 
Court at Delhi for the variation or reversal of such order and thereupon such court may confirm, modify 
or reverse such order. 

6 

 
14.  Power  to  terminate  contract  of  employment.–If  the  Administrator  is  of  opinion  that  any 
contract of employment entered into by the society in relation to its management, at any time before the 
commencement of this Act, is unduly onerous, he may, by giving to the employee one month's notice in 
writing or the salary or wages for one month in lieu thereof, terminate such contract of employment. 

15. Power to make rules.–(1) The Central Government may, by notification in the Official Gazette, 

make rules for carrying out the provisions of this Act. 

(2) Every rule made by the Central Government under this Act shall be laid, as soon as may be after it 
is made, before each House of Parliament while it is session for a total period of thirty days which may be 
comprised in one session or in two or more successive sessions, and if, before the expiry of the session 
immediately following the session or the successive sessions aforesaid, both Houses agree in making any 
modification  in  the  rule or  bothHouses agree that  the  rule  should  not  be  made, the rule  shall  thereafter 
have effect only in such modified form or be of no effect, as the case may be; so, however, that any such 
modification or annulment shall be without prejudice to the validity of anything previously done under 
that rule. 

16. Repeal and saving.–(1) The Lalit Kala Akadami (Taking Over of Management) Ordinance, 1997 

(Ord. 10 of 1997) is hereby repealed. 

(2) Notwithstanding the repeal of the Lalit Kala Akadami (Taking Over of Management) Ordinance, 
1997 (Ord. 10 of 1997), anything done or any action taken under the said Ordinance shall be deemed to 
have been done or taken under the corresponding provisions of this Act. 

7 

 
